Solana Drops to $85... Is This the Start of a Bear Market?

▲ Solana (SOL)

Solana (SOL) has fallen below $85, and its upward momentum has sharply weakened. Technical indicators are all sending bearish signals, requiring caution from investors.

On April 29 (local time), FXStreet, a virtual asset specialized media outlet, reported that Solana's price is failing to hold key support levels amid weakening momentum. Solana is currently trading around $84.5. The Relative Strength Index has fallen below 50, indicating that sellers have taken market control. Trading volume is also noticeably decreasing. If strong buying interest does not enter the market, further declines are highly likely.

Experts predict that Solana will test the $80 support level. Bearish signals have also been detected in the Moving Average Convergence Divergence (MACD) indicator. The overall decline in market sentiment is also acting as a negative factor. While Bitcoin maintains the $77,000 level, Solana is showing an independent downward trend.

Network activity indicators also show a negative trend. The number of active addresses has decreased compared to the previous week. Investors are concerned about the outflow of liquidity from the Solana ecosystem. There are also warnings that if it fails to rebound in the current range, the price could drop to $75.

Solana is expected to continue experiencing volatility for the time being. Cautionary selling is pouring in ahead of the Federal Reserve's interest rate decision. The dominant analysis is that confirming support levels is a priority rather than a short-term rebound. Investors are maintaining a cautious stance until the market direction becomes clear.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*